• India CSR Awards 2025
  • Guest Posts
Monday, June 23, 2025
  • Login
India CSR
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
India CSR
No Result
View All Result
Home Articles

India: Challenges of the Decade

Decline in people’s income will certainly explode—even if it takes a few years for that to happen.

India CSR by India CSR
in Articles
Reading Time: 5 mins read
India CSR

Photo By: https://www.flickr.com/photos/marcello_arisi/

Share Share Share Share

Global consultancy firm Price Waterhouse Coopers has said that India has the potential to become world’s No. 2 economy in 2050 after China if it adopts the required structural reforms. The question is which structural reforms? The “structural” reforms of demonetisation and GST, though touted as path-breaking etcetera have led to a secular decline in our GDP growth rates.

Remember that international agencies like these had supported these steps of the Government. So, let us think through the challenges lest we lose the No. 2 slot. The challenge of the decade is how to manage the new technologies.

A driverless Metro Train was inaugurated in the country recently. Good. But Matthew D Johnson, Professor at St. Stephen’s University, Canada, has fore cast that robots will displace 50% of jobs by 2035. The situation will be much worse by 2050 when India has the potential to become No. 2 in the world. The total employment in the organised sector has been declining in the country in the last many years while large numbers of youth are entering the labour market.

Let us also provide jobs to the backlog of unemployed; we are adding to the unemployed by killing the existing jobs, in part, by adopting new technologies. Robots are making pizzas and serving to the customers in human-less shops in the United States today.

Where from will the crores of our small shop owners and youth make a living then? A restaurant in Kerala recently introduced robotic waiters. So, jobs are vanishing. On the other hand, the small industries that are in the forefront of job creation are under pressure from big companies that manufacture through global value chains.

A large pharmaceutical manufacturer in India may be importing raw materials from China, containers from Brazil, electronic equipment from Germany and logistics software from India. They roam the world looking for the lowest prices for raw materials and highest prices for their finished goods.

They also get “economies of scale.” The cost of production is less when under take non a large scale. A small pharmaceutical company cannot possibly compete with these large companies because it has to buy raw materials locally even if they are expensive; and sell the finished goods locally even if the price is less.

The small entrepreneur may be a graduate who is the purchase manager, production manager, human resource manager, accountant, finance manager and marketing manager of his small unit. How can she possibly compete with the numbers of Engineers and PhDs employed by big companies for each of these functions?

If our small industries come under pressure, if the job-creation suffers then the youth entering into the job market will engage in counter-productive criminal activities instead of productive activities.

This is the logical result of adopting efficient production by hi-tech global value chain driven big companies. Thus, global consultancy firm Arthur D Little and Bank of America have said that local production should be encouraged and small industries should be provided assistance.

I do not think the “encouragement” and “assistance” will be effective given the huge and ever-increasing gap in the technologies and global value chains developing between small- and large companies. “Encouragement” and “assistance” means that the big- and small will continue to compete in the market.

This will not work in the coming decade just as it has not worked in the last three decades of liberalisation. Irecalla report commissioned by the Manmohan Singh Government that suggested that clusters of small industries must be established to enable them reduce their cost of production by making community water pollution treatment plants, for example. That did not work.

We will necessarily have to provide “protection” rather than “encouragement” and “assistance” to our small businesses to enable them to stand competition from large companies in order to provide jobs to our youth. The protection provided to domestic-ands mall industries may lead to them making sub-standard or expensive products.

They will be able to sell their shoddy products in the domestic markets because good quality products made by large-and foreign companies would be subject to high taxes and get priced out of the market. An example of this was the production of the shoddy Ambassador cars in India for three decades till Sanjay Gandhi entered in collaboration with Maruti in the eighties.

One possible way out is to have limited robotic and large-scale production for exports. That will enable our industrialists to adopt front line technologies and also obtain the benefits of cheap labour available in our country—but only for exports.

The country will get advanced technologies and jobs will be created in the export sector; while the domestic market will provide space to the small companies and they will create jobs.

But let us not fool ourselves. The “inefficient” production undertaken by the small manufacturers in India will lead to high cost of production. The garment that could be produced by a large company at Rs 200 will be produced by the small manufacturer at Rs 250.

This will impose an “unnecessary” cost on the Indian consumer. This cost should be seen as a “employment tax.” When the consumer pays Rs 50 more for the garment she will pay Rs 100 less for the loss due to increased crime.

The choice before the Finance Minister is this: Will we ask Indian consumers to buy expensive domestic goods with jobs; or cheap foreign goods without jobs? The demographic divided being touted as India’s strength is slowly but inexorably moving towards becoming a demographic disaster.

Demonetisation, GST and COVID Pandemic have dealt three heavy blows to our people. Those who have lost their jobs are eking out a living by selling vegetables. According to one district-level official of the BJP from UP, the daily earning of vegetable sellers has declined from Rs 2,000-a-day to Rs 500 today. Today there are 20 vegetable vendors where there were only two previously. This decline in people’s income will certainly explode—even if it takes a few years for that to happen.

The challenge for the next decade is to find a path way between the efficiency of the job-eating large businesses; and the inefficiency of the job-creating small businesses.

Tags: Dr Bharat Jhunjhunwala

India CSR offers strategic corporate outreach opportunities to amplify your brand’s CSR, Sustainability, and ESG success stories.

📩 Contact us at: biz@indiacsr.in

Let’s collaborate to amplify your brand’s impact in the CSR and ESG ecosystem.

ADVERTISEMENT
India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

Related Posts

Sustainability
Articles

Sustainability Is No Longer the Pitch, It’s the Project

1 month ago
0
Corporate Social Responsibility
Articles

Practices That Power CSR Talent and Governance in India

1 month ago
0
water harvesting in rural India
Articles

From Scarcity to Sustainability: How Water Harvesting is Transforming Rural Communities

2 months ago
0
Top Drivers for Sustainability and Responsibility in 2023
Articles

Three Responsibilities Foreign Investors Must Embrace in India: A New Era of Accountability

2 months ago
0
Pavan Kaushik
Articles

A Strong Mind and Unwavering Decisions by Women Changed the Dynamics of Child Mortality and Maternal Mortality Ratio in India

3 months ago
0
Prioritize the Social Sector and Look at More Inclusive Development
Articles

2025 Should Prioritize the Social Sector and Look at More Inclusive Development

3 months ago
0
Digital Transformation
Articles

Harnessing Digital Transformation for Strengthening Internal Marketing and Organizational Synergy 

3 months ago
0
Corporate Social Responsibility (CSR)
Articles

Closing the Learning Divide: How Edufront is Transforming Schools Through CSR Partnerships

3 months ago
0
Vaishali Nigam Sinha, Vice President-Northern Region, UN Global Compact Network India (UN GCNI) and Co-Founder & Chairperson, Sustainability, Renew
Articles

Urgent Call for Collaboration on Gender Equality: Vaishali Nigam Sinha

3 months ago
0
Load More
Next Post
India CSR

Vaccine manufacturing in India

India CSR

Grundfos applauds New C40 Leadership Standards

India CSR Awards India CSR Awards India CSR Awards
ADVERTISEMENT

LATEST NEWS

CSR: Coca-Cola India’s Recycled Flag Sets Limca Book of Records 2025 Entry

Delta Electronics India Named ‘ESG Company of the Year’ at 2025 Environmental Conclave

CSR: JK Organisation Conducts Blood Donation Camps

Cipla CSR Spending Report of Rs 85 Crore for FY25

CSR: Sajjan Jain Support Trust Backs Education for Visually Impaired with NAB India

Swaraj Engines CSR Spending Report of Rs 3.4 Crore for FY2025

HZL HZL HZL
ADVERTISEMENT

TOP NEWS

Textile Industry Faces ESG Scrutiny: Arvind, Raymond, and Grasim Navigate Challenges

Early Pepe Coin Investor Says Little Pepe Is the New PEPE: Everything You Need to Know and How to Buy LILPEPE Now in 2025

CSR: JK Organisation Conducts Blood Donation Camps

Top 10 Reasons to Rent a Water Purifier?

HDFC Life, Digamber Capfin Expand Access to Life Insurance

JSW Energy CSR Spending Report of Rs 34 Crore for FY2025

Load More

Advertisement

Image Slider
content writing services Guest Post Top 5 Reasons to have Sponsored Posts at India CSR – India’s Largest CSR Media stem learning R2V2 Technologies Private Limited

Interviews

Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak Mahindra Bank
Interviews

Driving Sustainable Impact: An Interview with Himanshu Nivsarkar, Kotak Mahindra Bank

by India CSR
May 22, 2025
0

By Rusen Kumar NEW DELHI (India CSR): Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak...

Read moreDetails
Balamurugan Thevar, CSR Head at Shriram Finance

Empowering Women Drivers: An Interview with Balamurugan Thevar, CSR Head at Shriram Finance

May 20, 2025
0
N E Sridhar, the Chief Sustainability Officer at Titan Company Ltd.

Empowering Rural Craft Entrepreneurs: An Interview with N E Sridhar, Titan Company

May 15, 2025
0
Geetaj Channana, the Head of Corporate Strategy at Vivo India

Empowering Young Innovators Across India: An Interview with Geetaj Channana, the Head of Corporate Strategy at Vivo India

April 25, 2025
0
Load More
Facebook Twitter Youtube LinkedIn Instagram
India CSR Logo

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium services, we invite you to partner with us.

Follow us on social media:


Dear Valued Reader

India CSR is a free media platform that provides up-to-date information on CSR, Sustainability, ESG, and SDGs. They need reader support to continue delivering honest news. Donations of any amount are appreciated.

Help save India CSR.

Donate Now

donate at indiacsr

  • About India CSR
  • Team
  • India CSR Awards 2025
  • Partnership
  • Guest Posts
  • Services
  • Content Writing Services
  • Business Information
  • Contact
  • Privacy Policy
  • Terms of Use
  • Donate

Copyright © 2025 - India CSR | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers

Copyright © 2025 - India CSR | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.